HB 18-1260

HB 18-1260, also known as the Colorado Prescription Drug Price Transparency Act of 2018, requires health insurers and prescription drug manufacturers to provide detailed information about drug prices and price increases. Starting in 2021, health insurers must report on covered drugs from the previous year, while drug makers need to inform state buyers, insurers, and pharmacy benefit managers when they raise drug prices by more than 10% or introduce new specialty drugs. The bill also mandates that manufacturers disclose this information to a state commissioner who will publish it online for public view. Violators face penalties of up to $1,000 per day. This law is now signed and in effect, meaning health insurers and drug companies must start complying with these reporting requirements as specified dates approach.

Official Summary

The bill enacts the 'Colorado Prescription Drug Price Transparency Act of 2018', which requires: Health insurers, starting in 2021, to submit to the commissioner of insurance (commissioner), as part of the health care cost reporting requirement, information regarding prescription drugs covered under their health insurance plans that were dispensed in the preceding calendar year; Prescription drug manufacturers to notify state purchasers, health insurers, and pharmacy benefit management firms when the manufacturer, on or after July 1, 2020, increases the price of certain prescription drugs by more than 10% or introduces a new specialty drug in the commercial market; and Prescription drug manufacturers, within 15 days after the end of each calendar quarter that starts on or after July 1, 2020, to provide specified information to the commissioner regarding the drugs about which manufacturers are required to notify purchasers of a drug price increase or new specialty drug on the market. The commissioner is required to post the information received from prescription drug manufacturers on the division of insurance website. Additionally, the commissioner, or a disinterested third-party contractor, is to analyze the data submitted by health insurers and prescription drug manufacturers and other relevant information to determine the effect of prescription drug costs on health insurance premiums. The commissioner is to publish a report each year, submit the report to specified legislative committees, and present the report during annual 'State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act' hearings. The commissioner is authorized to adopt rules as necessary to implement the requirements of the act. A prescription drug manufacturer that fails to notify purchasers or fails to report required data to the commissioner is subject to discipline by the state board of pharmacy, including a penalty of $1,000 per day for each day the manufacturer fails to comply with the notice or reporting requirements. The commissioner is to report manufacturer violations to the state board of pharmacy. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) Read More

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